Under the Perpetual Inventory System,when a Wholesaler Returns the Goods

question 28

Multiple Choice

Under the perpetual inventory system,when a wholesaler returns the goods purchased on account,the ________ account is credited.

• A) Accounts Receivable
• B) Merchandise Inventory
• C) Cost of Goods Sold
• D) Accounts Payable

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Definitions:

Assessed Values

The valuation placed on a property by a public tax assessor for purposes of taxation.

Taxes

Mandatory financial charges or levies imposed by a government on its citizens and businesses to fund public expenditures.

Canadian Dollars

The Canadian dollar is the currency of Canada, often represented by the symbol CAD or simply $.

Lower Terms

Expressing a fraction in its simplest form so that the numerator and denominator are as small as possible.